Report Highlights: 

The MY 2014 Turkish cotton crop is forecast at 430,000 hectares and 680,000 MT (3.1 million bales). Even though excessive rains following planting in all regions forced farmers to replant and was expected to negatively affect yields, the crop is developing very well with higher yields and no major insect problems. Domestic cotton consumption increased to 1.37 MMT (6.3 million bales) due to higher textile and garment exports. Total cotton imports during the first eleven months of the MY 2013 were 863,000 MT (3.9 million bales), up about 18 percent compared to last year, of which 288,000 MT (1.3 million bales) were US cotton.

Production 

MY 2014/5 cotton planting area and production are expected to be about 430,000 hectares and 680,000 MT (3.1 million bales), up thirty and thirty-six percent respectively following two years of decline. Higher returns in 2013, an increase in production bonus and suitable weather conditions during the season all contributed to the planting increase. Additionally farmers that were hurt by insect attacks last year are reported to be observing their fields more closely and taking necessary measures when needed. 

The GOT has increased the seed cotton production bonus for the 2014 crop year about ten percent to TL 0.55 per kilogram, which had a positive effect on cotton planting. (The exchange rate as of 8/28/2014 was US$1 = 2.15 TL) 

Turkey become part of the Better Cotton Initiative (BCI) last year and is expected to produce about 25,000 MT of BCI cotton in MY 2014. 

Consumption 

MY 2013 domestic cotton consumption was about 1.37 MMT (6.3 million bales). Increased Chinese yarn imports from Asian sources left the European market to Turkish firms and helped increase domestic consumption. Turkish exports of textiles and garments have increased 7.5 percent and 10.4 percent respectively during the last twelve months and total exports reached US$27 billion. In recent months, however, China’s changing strategies, including using some of its stocks for production, has caused increased competition in international markets for Turkish textile exports. Under the view of recent developments, domestic consumption in MY 2014 is not expected to increase and is forecast to remain about the same as last year. 

Trade 

Total imports for the first eleven months of MY 2013 were 863,000 MT (3.96 million bales), up significantly compared to last year. The U.S. provided about half of the imports with 407,000 MT (1.8 million Bales). Turkmenistan (151,000 MT), Greece (144,000 MT), and India (49,574 MT) were the other leading suppliers during the same period. Despite the war conditions, about 42,700 MT of Syrian cotton also found its way to the Turkish market. MY 2013 year end imports are expected to be 920,000 MT. 

In the first eleven months of MY 2013, Turkish total cotton exports (including hydrofoil cotton for medical use) reached 41,400 MT, of which 10,050 MT were lint cotton for textile use and the remaining 31,350 MT were hydrofoil cotton for medical use. About 3,300 MT of Turkish cotton exports were to the Mersin Free Trade Zone that can be imported back in to the country later. China was the leading destination with 3,500 MT followed by Taiwan about 1,000 MT